Monadelphous Group Limited · ASX:MND
Monadelphous — H1 FY2006 Earnings Presentation
19 slides from Monadelphous's earnings presentation, February 2006
Slide 1: December 2005 Half Year Results Presentation
December 2005 Half Year Results Presentation February 2006
Slide 2: Highlights
Highlights 56% increase in After Tax Profit (on top of last year’s exceptional 101% increase) Health & Safety performance (TCIFR) improved by 30% Capitalising on leading competitive position and strong market Shortage of skilled labour remains the key challenge High workload levels - over $200m of n
Slide 3: Financial Highlights
Financial Highlights Continued EPS growth, up 53% to 15.6c Revenue up 22% to $243.5m EBITDA margin up 25% to 8.5% Underpinned by strong operating cash flows up 137% to $37.1m Capital expenditure remains high at $10.8m, while the net cash position firmed to $24.7m Fully franked interim dividend up 71
Slide 4: Financial Performance Summary
Financial Performance Summary Dec 05 Dec 04 % Change Revenue $243.5M $199.5M +22% EBITDA $20.8M $13.6M +53% Net Profit After Tax $12.5M $8.0M +56% Earnings per Share 15.6c 10.2c +53% Interim Dividend 9.00cpsff 5.25cpsff +71% Return on Equity 24.1% 18.3% +32% December 2005 Half Year
Slide 5: Healthy increase in recurring business revenues
Healthy increase in recurring business revenues Revenue Profit After Tax 400,000 18,000 350,000 16,000 300,000 14,000 250,000 12,000 10,000 $'000 $'000 200,000 8,000 150,000 6,000 100,000 4,000 50,000 2,000 0 0 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006 Dec Half June Half Dec Half J
Slide 6: Improved margins from buoyant market conditions
Improved margins from buoyant market conditions EBITDA Margin Profit After Tax Margin 9% 6.0% 8% 7% 5.0% 6% 4.0% 5% % 4% % 3.0% 3% 2.0% 2% 1% 1.0% 0% 2001 2002 2003 2004 2005 2006 0.0% 2001 2002 2003 2004 2005 2006 Dec Half Full Year Dec Half Full Year 25% improvement in EBITDA margin to 8.5% and 28
Slide 7: Record operating cash flow
Record operating cash flow EBITDA Cashflow from Operations 30,000 40,000 35,000 25,000 30,000 20,000 25,000 $' 000 $'000 15,000 20,000 15,000 10,000 10,000 5,000 5,000 0 0 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006 Dec Half June Half Dec Half June Half EBITDA of $20.8m, up 53% Earni
Slide 8: Special dividend payable in September 2006
Special dividend payable in September 2006 Earnings Per Share Total Dividend Payments 25.0 20 18 20.0 16 14 15.0 12 Cents Cents 10 10.0 8 6 5.0 4 2 0.0 0 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006 Dec Half June Half Interim Dividend Final Dividend Special Dividend EPS of 15.6cps up
Slide 9: Capital expenditure remains at high levels
Capital expenditure remains at high levels Debt to Equity Capital Expenditure 45% 20,000 18,000 40% 16,000 35% 14,000 30% 12,000 $'000 25% 10,000 % 20% 8,000 15% 6,000 10% 4,000 2,000 5% 0 0% 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006 Dec Half June Half Dec Half Full Year Plant and
Slide 10: Return on equity at historically high levels
Return on equity at historically high levels Return on Equity 40% 35% 30% 25% % 20% 15% 10% 5% 0% 2001 2002 2003 2004 2005 2006 Dec Half June Half Return on equity at 24.1% for the half year remains at historically high levels December 2005 Half Year
Slide 11: People Performance
People Performance Employee Numbers Total Case Injury Frequency Rate (TCIFR) 60 2,500 50 2,000 40 1,500 30 1,000 20 10 500 0 0 2001 2002 2003 2004 2005 2006 Jun - 02 Jun - 03 Jun - 04 Jun - 05 Dec-05 TCIFR Drive to improve health & safety performance continued with 30% reduction in YTD total case in
Slide 12: Maintenance & Industrial Services Division
Maintenance & Industrial Services Division Revenue 200,000 Dec 05 Dec 04 % Change 150,000 Revenue $113M $68M 66% $' 000 100,000 50,000 0 2004 2005 2006 Dec Half June Half Maintenance & Industrial Services revenue increased a healthy 66% driven by: Full period revenues from maintenance contracts secu
Slide 13: Maintenance & Industrial Services Division Highlights
Maintenance & Industrial Services Division Highlights QLD maintenance contracts secured during last financial year contributing to revenue growth, include: Comalco’s Alumina Refinery, Gladstone, QLD Comalco’s Boyne Smelter, Gladstone, QLD WA maintenance work secured during last financial year contri
Slide 14: Skystar
Skystar Skystar Airport Services continued to grow in the first half New contracts won in November & December with: Singapore Airlines in Perth & Brisbane Qantas Airlines in Kalgoorlie, WA Jetstar in Christchurch, New Zealand Skystar’s revenue rate has grown to around $20m per annum Considerable opp
Slide 15: Engineering Construction Division
Engineering Construction Division Revenue Dec 05 Dec 04 % Change 250,000 200,000 Revenue $131M $132M -1% 150,000 $' 000 100,000 50,000 0 2004 2005 2006 Dec Half June Half Engineering Construction revenue almost matched the exceptional six month revenue recorded in the first half of last year Around
Slide 16: Engineering Construction Division Highlights
Engineering Construction Division Highlights Substantial successful progress of major contracts including: Major expansion of iron ore stockyards for Rio Tinto Iron Ore’s Dampier Port Upgrade, WA Sulphuric Acid Plant for BHP Billiton’s Ravensthorpe Nickel Project, WA Extension of stockpile capacity
Slide 17: Engineering Construction Division Highlights
Engineering Construction Division Highlights $200m of new major contracts secured over last few months: Expansion of iron ore facilities at Rio Tinto Iron Ore’s Yandicoogina mine, WA Yabulu Nickel Extension Project at BHP Billiton’s Yabulu Nickel Refinery, Townsville, QLD Stockyard and car dumper fa
Slide 18: Key Customers
Key Customers BHP Billiton (Iron Ore, Nickel, Coal, Copper) Rio Tinto Iron Ore (Iron Ore) Xstrata (Copper, Lead) Comalco (Alumina, Aluminium) Queensland Alumina (Alumina) Alcan (Alumina) Alcoa (Alumina) Chevron (Oil, Gas) Santos (Oil, Gas) Woodside (Oil, Gas) Oil Search (Oil, Gas) December 2005 Half
Slide 19: Outlook
Outlook Full year revenues forecast to reach $500m Resource constraints will continue to limit capacity and provide the greatest challenge in the current business environment High levels of capital expenditure on plant and equipment are also expected to continue in line with the increased workload R